Posts filed under ‘Institutional Money Moves’

It takes training, systems, systematics, and effort; but it is learnable and doable.

On our recent webinar, we shared the key elements of Trading and Investing success. We understand that not all of you had the time to participate and unfortunately our webinar provider does not offer a recording.

To bring you on board with what matters, we put together a short article.

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How to operate with a high probability trading system, giving you at or above 65% probability to predict the future price move. Price changes have an underlying measurable pre-phase and continuation phase. Our algorithms highlight those happenings and you learn to follow them with clear-cut Entries, Exits, and Stops. We show you examples and offer you live experiences.

Risk management is the key essence of successful trading; learn how to put it in place.

Position sizing or money management: let us show you how it shall be done.

Repair and hedge strategies are imperative for successful traders and investors.

Operate with a business plan for trading success (A clear-cut guideline to success).

Find clear advice for the attitude and behavior needed to establish your trading and investing future.

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Since the beginning of 2018, the US-stock market gives traders and investors a challenge that was not present for a long time: increasing volatility.

There are different ways of expressing volatility: Commonly the VIX (CBOE Market Volatility Index) is taken as the volatility measure; however, besides a short spark in February, the VIX still dwells below 20, which is considered low volatility.

On the other hand, we do not need to rely on what the index says to understand if volatility increased or not. Just take a monthly chart and look at the size candles of the core stock market index, then you see what is happening:

NLT TrendCatching Chart for SPX (S&P 500 Index), October 2016 to April 2018

The chart shows you multiple buy signals along the up move until the S&P 500 reached its high in January 2018. In March of 2018, a first sell signal occurred.

How to read the NeverLossTrading Trend Catching Chart:

With the NLT system, you trade or invest when the formulated price threshold is surpassed in the price-move of the next candle: Buy>$2519.40 was indicated end of September 2017 and confirmed in October 2017, leading to going long in the index and we closed the position when the price reached the gray target dot at $2590.40; concluding a 71-point price move. End of November 2017, another price threshold was formulated and confirmed in the next candle and came to target. The last buy signal on the chart: Buy>$2877.90 was final and no more confirmed.

By the change in color, a momentum change came on the chart, resulting in a first sell signal: Sell<$2585.90.

The bottom study: NeverLossTrading Balance of Power Indicator, tells you in blue that buyers were in command (blue bars), until in February 2018, when sellers were more dominant.

All NLT charts auto-adjust and signal directional trading opportunities, regardless of the asset or time frame you choose.

Back to volatility:

When you look at the size of the 2018 monthly candles, you recognize that they are significantly bigger (top-to-bottom) than all the candles we have seen in the prior months: telling you that volatility increased, and as a trader or investor, you better have strategies on hand to deal with times of higher volatility.

Why do we make this point?

In times of higher volatility, when keeping the same risk tolerance, your risk of getting stopped out in your trades increases; thus you need new trading strategies to cope with the new risk gauge to bring your trades to target.

When trading or investing, we make assumptions, predicting potential directional price moves, while we cannot influence if the price gets to our target; however, we can control the risk by the trading strategy we apply: Meaning, if you prior operated with a 2% stop, in times of volatility, a 5% stop might be needed to follow the predominant price move.

If the increased volatility brings you outside of your risk tolerance, you have multiple choices to still trade and invest:

Each price move captured on the chart resulted in a $250 gain/risk based on one futures contract. Just add up the realized directional opportunities of one trading day and you see; how a change in trading strategies can accelerate your opportunities to participate in directional price moves of the underlying multiple times a day.

This is where we come into play and help you to have the trading strategies, systems, and systematics on hand to cope with every trade environment.

We are in business since 2008 and developed multiple systems and the necessary tools and knowledge base to support you in your aim for trading and investing success. If this is for you and you want to experience how it works live:

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Options offer wonderful tools for private investors to participate in the price moves of the underlying stocks, futures, commodities, and currencies.

With options, you find a variety of trading opportunities by Calls, Puts at various strike prices and expiration dates; not to mention the ability to create multiple types of spreads and combinations to take advantage of different market conditions; however, we want to keep it simple and focus on using options for participating in directional price moves of the underlying assets and you can do this with any type of account, even IRA, custodian, or cash accounts.

Thus, let us share with you how to find strong directional price move setups and explain the reasons for trading options instead of the underlying assets.

Focusing on a simple way of option-trading, we buy Calls to participate in price moves to the upside and we buy Puts for price moves to the downside.

What will be your advantage of buying options over buying or selling the asset?

Our answers are multifold:

You can limit your maximum risk to the premium paid.

Options allow you to only invest a fraction: 1% – 5% of the asset price.

You operate with leverage, striving for 30% – 200% return per trade.

Trades can be repaired when they do not work: reducing losses or even turning losers into winners.

There is no uptick rule for buying or selling options and thus, you can participate in price moves to the downside in any type of account and market condition.

Your key to successful option-trading is your ability to repetitively predict directional price moves with a high accuracy.

This is where a trading system comes into play and you best only consider trading systems that offer you the following:

A ≥ 65% probability to predict the future price move of an asset.

Trading/investing at specific and confirmed entry conditions only.

At entry, you receive specific target prices, reachable in a pre-defined period of time.

Operating with specific stop price levels, where you either exit your trade or you start repairing it.

For option traders, the element of high predictability of a price move at a pre-specified time period is important: At whatever strike price you buy Puts or Calls, you are always paying a time value; which is decaying, taking away from your investment even so the underlying asset price might not even move in your disfavor.

Let us put together two examples:

TSLA Daily NLT-Top Line Chart March 5 to March 29, 2018

The chart shows you on 3/14/2018 a trade condition: Sell <$323.92 (CiC expresses a change in command; sellers take over from buyers at this setup). Thus you can operate with a clear-cut entry-level condition: When the price-move of the next candle surpasses the set price threshold, go short in the asset (TSLA) through buying Puts.

The trade entry condition was met in the next candle/bar on 3/15/2018 and thus confirmed the trade entry. By the system conditions, you know the maximum and favorable price to pay for the option and the time to expiration to decide for. We teach those details, concepts, and strategies in our mentorships and give you the tools on hand for taking solid trading and investing decisions.

Where is the magic in trading options?

Let us explain:

You are able to participate in the downside price move of TSLA without the need to comply with SEC regulations that do not allow sorting stocks with account holdings < $25,000, or in an IRA, or cash accounts.

No need to borrow TSLA stock from your broker, with the risk that it might not be available for you.

The NLT system conditions specified at the chosen instance, the maximum price to pay for TSLA Put options at $14; favorably at $7:

When accepting the trade, Puts were available at $7.22 and such the price to pay was in spec. (the NLT chart dashboard expresses those price levels).

In essence, your minimum investment to participate in the price move of TSLA was 2.2% of the share price at entry (just a fraction); asking you for a $722 investment, which is more or less the price of two shares and you control 100.

By NLT Top-Line, we assume to reach the price target-1 after a maximum time in the trade of five bars/candles.

Actually, the price moved to target-1in three bars, producing a 70% return on investment.

Price target-2 was supposed to be reached after a maximum of 10 bars and was reached at bar-8, with a return on investment of 433%.

Next, we show you if you like to take a longer-term perspective, how the system can help you to make sound decisions with fractional investments:

MSFT Weekly NLT-Top Line Chart, November 2017 to March 2018

The chart shows a buy threshold at Buy>$88.41, which was confirmed in the price move of the next candle, allowing the trade entry with Call options. This way, you can pre-condition your order so it only goes into the market when your conditions are met, at your pre-defined offering price. This way, you do not have a need to sit in front of your computer for the order entry.

By our system, we originally assumed to reach the target-1 after one to five bars and got there in two bars. Target-2 was reached at bar-3 (3-weeks later), with the following return expectations:

Return at target-1: 52%.

Return at target-2: 110%.

Again, you just had to invest a fraction of the share price: <2% and you were able to participate in the price move of the underlying in $160 investment increments.

We hope this shows you, how you can keep more of your own money and make better than average returns… and fewer mistakes. NeverLossTrading provides you with the systems and knowledge to find such opportunities and to make those decisions. You stay in control as the markets move up and down, with at-a-glance guidance where the chart will tell, when to best buy or sell. Your trade potentials are either to be found by own scanners or by the NeverLossTrading Alerts (subscription service).

We are in business since 2008 and developed multiple systems and the necessary tools and knowledge base to support you in your aim for trading and investing success. If this is for you and you want to experience how it works live:

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Most leave it up to a funds provider to manage their financial future.

The performance measure for fund managers is to meet as close as possible one of the key index measures:

Large Cap: DOW or S&P 500

Small Cap: Russell 2000

The past two years provided strong overall stock market growth, but what will you do if the performance measure points sideways or down?

Then, you will not meet your expected returns and the planned time to reach retirement; or the lifestyle you had planned for is not the same.

Take your financial future into your own hands and learn how to trade or invest!

The difference between trading and investing is only the perspective of how long you expect to hold a position in an asset: Stock, Options, Future, and FOREX.

The system (knowledge), attitude, and behavior needed to produce success is the same!

With the right knowledge, attitude, and behavior, you can make money and reach your investment goals regardless of the markets are going up, down, or move sideways.

Creating trading and investing success is not based on a single decision, it is based on:

Take your financial future into your own hands and trade the markets based on modern algorithms that spell out trading and investing opportunities by following institutional money moves. Analyze the markets in seconds and trade or invest in what you see!

The chart spells out clear directional trading opportunities and trading targets to be reached after a specific period of time, with clear-cut entry conditions: Sell < $12.10; Sell< $11.11.

When the price-move of the next candle reaches the desired price threshold, you go short in the asset.

Wait a moment; you cannot do such in an IRA!

Yes, you can make money when the price of an asset goes down; you just need the knowledge of how to legally and in compliance with the IRA rules, you can participate in such price moves.

Imagine you were able to realize a price drop in less than a month, giving you a 15% return: as you see it on the above chart: This is more than the DOW grew in 12-months in 2016.

When you can imagine this, and then think about the opportunity to leverage your trading success and limiting your overall risk.

How does that sound?

We deliver the system, knowledge, and training needed to get you there. NeverLossTrading is in the trader and investor education business since 2008 and we are open to work with you and teach you in one-on-one sessions at your best available days and times, what is needed to turn yourself into the trader or investor you want to be.

In case you like to invest/trade by a longer-term perspective:

Intel Corporation 1/16 -2/16/2018, Monthly NeverLossTrading Chart

The entry conditions of the NLT-signals were met in the next price candle and came to target, letting you harvest and overall a 22% return in four months; which is about what the DOW grew in 2017 in twelve months.

We are here to teach you and let the chart tell when to buy or sell!

In addition, you will learn multiple trading strategies and how to repair a trade when it goes wrong; which gave us our name: Never Stop Loss Trading, but we shortened it a little.

If you like to learn how to trade and invest the NeverLossTrading way, schedule a free live demo:

We share in an article, how to trade directional price moves (page 68 – 79).

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With the help of our trading systems, training, and coaching, you experience:

How high probability trade setups can be found based on the underlying pre-stage of a price move.

The importance of projecting at entry how far the price move shall reach and where to put a key action stop, to stay out of the natural volatility of an asset – combining the two for trading with the odds in your favor?

To apply multiple trading strategies for hedging and leveraging positions.

The power of position sizing, considering the strength of your trade setup by a minimum and maximum risk assessment.

Operating with a business plan for trading success: Financial Plan (what to expect) and Action Plan (how to act).

If you want to learn how to integrate this and more in your trading and investing: